Top Indian Banking Industry News & Updates - 30 April 2024,Tuesday
🗎 RBI / MoF / Govt. Policies
RBI asks all regulated entities to review their lending practices
📝 FinMin studying Bombay HC order restricting PSBs from seeking look out circulars against wilful defaulters
📝 RBI directs lenders to review their lending practices in line with fair practice code
📝 RBI issues draft framework for electronic trading platforms
📝 RBI launches two key surveys for monetary policy inputs
📝 'Can’t levy interest on loan amounts not received': RBI to Banks
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🏦 PSB / Pvt Banks
Deposit growth improves at private banks in Q4, but at higher costs
The deposit growth of banks has resumed after falling behind the growth in advances over the previous few quarters, showed an analysis of the March 2024 quarter results of top private sector banks.
Tata Motors signs MoU with South Indian Bank for CV financing
Tata Motors, India’s largest commercial vehicle manufacturer, has signed a Memorandum of Understanding (MoU) with South Indian Bank to offer convenient financing solutions to its commercial vehicle customers and dealerships.
Banks raise spends on IT to improve digital prowess
Banks are investing large sums of as much as 10% of their operating expenses to upgrade their IT systems and comply with regulatory norms, even as they cope with the rising number of online transactions.
ICICI Bank shares climb over 2 pc after Q4 earnings
ICICI Bank shares climb over 2% after Q4 earnings
The Indian Express
AU Small Finance Bank stock rallies over 6% on universal banking hopes
The RBI had on Friday released guidelines for voluntary transition of SFBs into universal banks. The apex bank has laid down qualitative criteria of a satisfactory five-year track record, which will be evaluated post the application made by SFBs.
Bandhan Bank: Outgoing MD & CEO Chandra Shekhar Ghosh considering stake sale in promoter group, says report
Bandhan Bank MD & CEO Chandra Shekhar Ghosh is reportedly considering options to monetise his holding in Bandhan Financial Services, moving towards a partial divestment in Bandhan Bank, the Hindu BusinessLine reported, citing sources.
Private banks end FY24 on a strong note; focus remains on margins, profitability in FY25
Private banks closed FY24 on a strong note with healthy Q4 earnings across the board led by strong loan growth and a pick in deposit growth in the last quarter of the financial year. Loan growth continued to be led largely by retail, unsecured and small and mid-corporate segments. While capex growth continues to be led by PSUs and government spending, some mid and large banks were optimistic about some signs of a pick in private capex going into FY25.
ICICI Bank keeps costs in check, but margin concerns linger
ICICI Bank’s shares hit a new 52-week high of ₹1,163.45 apiece on Monday, rising by more than 4%, after its March quarter (Q4FY24) did not bring any negative surprises. India's second-largest private lender’s results met analysts’ expectations, reporting an increase in its loan book and net profit.
📝 Expect a capital call from IDFC First Bank in FY25: V Vaidyanathan
📝 IDBI Bank seeks ROC help over nominee director dispute with NTADCL
📝 Your preference for digital is leaving banks with a bigger bill
📝 ICICI Bank m-cap tops Rs 8 lakh crore, cuts its value gap with HDFC to half
📝 UCO Bank Q4 Results: Net profit drops 9% YoY to Rs 526 crore on rise in operating expenses
📝 Jana Small Finance Bank Q4 Results: Net profit doubles to Rs 167 crore
📝 ICICI Bank becomes fifth Indian company to surpass Rs 8-lakh-crore mcap
📝 Moving towards zero net NPA; will consider universal bank licence after 2-3 years: Utkarsh SFB CEO
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🏦 Foreign Banks / FIIs / I-Banks
📝 Foreign banks seek leeway on LEF rules for Nostro accounts
📝 Two foreign banks optimistic on BJP show
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🏠 Housing Finance
Housing Loan: How to choose the right home loan lender
Selecting the appropriate home loan lender is a vital step in the home-buying process. It can influence not just the interest rate you receive, but also the overall cost, simplicity, and transparency of the transaction. However, it’s important not to rush into making this decision. Instead, take the time to secure quotes from a few lenders to compare interest rates, fees, and terms.
PNB Housing Finance Q4 Results: Profit zooms 57% to Rs 439 crore on steady demand for home loans
PNB Housing Finance Q4 consolidated net up 57% at ₹439 crore
The Hindu Business Line
📝 Can Fin Homes Q4 Results: Net profit rises 26% YoY to Rs 209 crore
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💳 ATMs / Credit Cards
Does SBI’s new credit card go the extra mile for travellers?
Last week, SBI Card launched a travel-focused credit card. The timing seemed to be just right. It is peak summer, with many people finalizing last minute getaway plans to cooler destinations. Yet, what does SBI Card MILES offer to its users and how does it compare with other such cards? Mint explores.
Street disappointed with SBI Cards & Payment Services' Q4 performance
SBI Cards & Payment Services reported mixed results for the January-March quarter (Q4) of FY24. While it managed to deliver strong earnings growth, it saw a perceptible decline in net interest margin (NIM) and suffered deteriorating asset quality. Taken together, the market was disappointed with the share dropping 3.5 per cent. The margin contraction was 39 basis points (bps) quarter-on-quarter (Q-o-Q) to 10.9 per cent coupled with poorer asset quality. The gross NPA was up 20 bps Q-o-Q to 2.8 per cent.
📝 Why you need to be smart about credit cards
📝 Cash still remains king as ATM withdrawals spike to Rs 1.43 crore in FY24
📝 NIMs will continue to prevail around the current levels: Abhijit Chakravorty, SBI Card
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🔍 Rating / Research
📝 Sebi gives nod to ICRA's arm to provide ESG ratings
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🗎 NBFCs / FIs / MFI
Technology, Financial Inclusion: The Roadmap for 2024-25
With the onset of new fiscal, it is crucial to highlight the evolution of India’s Non-Banking Financial Companies (NBFCs), driven by changing consumer preferences and increasing regional dynamics. The sector has witnessed rapid growth owing to the growing needs of consumers, who are opting for digital banking and personalised financial products. With this, NBFCs must adapt and innovate to thrive in a connected world.
‘Plan to increase gold loan mix to 10%’: MD & CEO YS Chakravarti, Sriram Finance
Shriram Finance intends to increase its gold loan mix to 10% of its loan book from nearly 3%, says managing director and CEO YS Chakravarti. He tells Ajay Ramanathan that the supply chain finance mix will increase to 5-8% in the next five years.
RBI cancels Acemoney (India's) NBFC licence citing violation of guidelines
Mint Explainer: How Mahindra Finance unearthed a ₹150 cr employee-dealer fraud
Mumbai: Non-bank financier Mahindra and Mahindra Financial Services, in a regulatory filing last week, said it has detected fraud at one of its branches in the northeast. The fraud involved retail vehicle loans and included forgery of know-your-customer (KYC) documents, leading to the embezzlement of huge funds. According to the lender, the financial impact of the fraud was estimated at up to ₹150 crore. Following a complaint, the Mizoram police have made several arrests, uncovering details of the fraud. Mint takes a look at how a clutch of employees, car dealers and others came together to perpetrate this crime.
Spandana Sphoorty Q4 net up 22% at ₹129 crore
📝 IFC investments in India to zoom to over $4 bn, focus on climate finance
📝 Satin CreditCare Network reports 33% YoY jump in March quarter
📝 Spandana Sphoorty Financial Q4 Results: Net profit rises 22% YoY to Rs 129 crore
📝 Poonawalla Fincorp Q4 Results: Profit jumps 67% YoY to Rs 332 crore
📝 Ambani’s Jio Financial plans to tap StanChart executive as unit CEO
📝 Prasad Salunke joins Jio Financial to lead automotive, solar, and device financing
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UPIs / Wallet / FinTech
BRISKPE raises $5 million in seed funding from PayU
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🧔 Brokers / Distributors
Brokerages bullish on ICICI Bank stock after Q4 results
New Delhi: An in-line ICICI Bank result for the quarter ended March 31, 2024, has led to analysts raising target price and earnings per share (EPS) forecast on the stock. ICICI Bank, they said, appeared least vulnerable to regulatory action on its digital offerings or for risk monitoring lapses. Compliance with regulatory norms shall be one of the key valuation drivers over the next 12 months, and ICICI ticks most boxes, even as many of its peers are being pulled up for lapses, analysts noted.
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🗠 Bourses
Expectations of future monetary policy impact stock markets more than rate announcements: RBI paper
Mumbai: Equity markets are impacted more by the expectations of future monetary policy than the policy rate surprises on the day of announcement of the policy by the Reserve Bank, said an analysis.
📝 NSE to assess Linde India’s related-party transactions
📝 BSE shares hit by Sebi's regulatory fee move
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Crypto
📝 Cryptocurrency market sees decline as Bitcoin and Ethereum slip
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🗠 Mutual Funds / AMCs
Silver ETF gains greater traction as AUM tops Rs 5,000 crore in April
📝 Sebi asks AIFs to report PPM changes directly to streamline compliance cost
📝 Thematic MF receive highest inflows of Rs 46,000 crore in FY24
📝 Know Your Fund Manager: Neelesh Surana, CIO, Mirae Asset Investment Managers
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🗎 Equities, Pvt. Equity / Hedge Funds
Equity fund managers to get sky-high bonuses amid stellar asset growth
Mutual fund houses are likely to dole out higher bonuses and increments this year in a bid to retain and reward top performers. Equity fund managers will be in the spotlight given the fast clip at which assets have grown in the past year, especially for the mid- and small-cap schemes. The managers may pocket bonuses in the range of 80-100 per cent of annual salary, on average, much higher than previous years.
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🗎 Govt. Securities / Bonds
Motilal Oswal Financial Services is offering up to 9.7% on its latest bond issue. Should you invest?
Motilal Oswal Financial Services Ltd (MOFSL) is tapping the bond market to raise up to Rs1,000 crore from non-convertible debentures (NCDs). The bond issue, the first of its kind from Motilal Oswal that offers investors interest of up to 9.7%. opened on 23 April and is set to close on 7 May. The issue is secured and redeemable, rated AA/stable by Crisil Ratings and India Ratings.
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